Staff augmentation vs employer of record in India
Both let a company outside India, or one without an Indian entity, have an India-based engineer working in its team. The difference is who finds the engineer and who employs them. HookStep does staff augmentation and permanent placement; it is not an employer of record.
The two models
Staff augmentation: a provider supplies an engineer who works inside your team, under your direction, for as long as you need them. The provider finds the engineer and holds the contract with them, and you pay the provider an hourly or monthly rate.
Employer of record (EoR): a company that legally employs a worker on your behalf in a country where you have no entity. It runs payroll, tax withholding, statutory benefits and the employment contract under local law. You find the person and direct their work; the EoR is their employer on paper. Finding candidates is not usually part of an EoR's service, though some sell recruiting separately.
When staff augmentation fits
- You need someone in weeks and do not have a candidate yet.
- The need is for a project or a fixed period.
- You want to work together before making a permanent offer (contract-to-hire).
When an employer of record fits
- You have already found the person you want to employ.
- You want them as a long-term employee with Indian statutory benefits, and you have no Indian entity.
- The relationship is meant to be employment, not a contract for a project.
Using both
The two combine. A provider such as HookStep finds and shortlists the engineer, and you employ the person you choose through your employer of record or your own Indian entity. In that case HookStep's part is a permanent placement, and the employment sits with the EoR.
If a contractor works only for you, full time, for a long period, ask an Indian employment lawyer whether the arrangement should be employment. That is a legal question, not one a staffing provider should answer for you.
Where HookStep fits
HookStep supplies India-based engineers on contract or contract-to-hire, and places engineers permanently with employers in India. It does not employ people on behalf of other companies or run their payroll, so it is not an employer of record.
Staff augmentation and employer of record side by side
| Staff augmentation | Employer of record | |
|---|---|---|
| Who finds the engineer | The provider | You (some EoRs sell recruiting separately) |
| Who employs or contracts the engineer | The provider | The EoR, as the legal employer |
| Who directs the work | You | You |
| Typical term | A project or fixed period, extendable | Open-ended employment |
| What you pay | An hourly or monthly rate per engineer | Salary, statutory costs and the EoR's fee |
| Ending it | Under the contract with the provider | Under Indian employment law and the employment contract |
Frequently asked questions
Is HookStep an employer of record?
No. HookStep supplies engineers on contract or contract-to-hire and places engineers permanently with employers in India. It does not employ people on another company's behalf.
Can I hire a permanent employee in India without an Indian company?
Yes, through an employer of record, which employs the person for you under Indian law. A recruiting partner such as HookStep can find and shortlist the engineer, and the EoR employs the person you choose.
Is staff augmentation cheaper than an employer of record?
It depends on the rates and fees, which differ by provider and role, so compare quotes for the same role. A staff augmentation rate includes finding the engineer; an EoR fee usually does not.
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